May 31, 2017

The non-implementation of the revised allowances under the 7th Pay Commission has resulted in a Rs 33,000 loss for central government employees every month. This loss can be covered only once the Narendra Modi government announces a 122 per cent hike in HRA for them. The E-CoS is set to table its report on June 1 before the Union Cabinet. The Cabinet will then have to take a final call on the HRA and allowances. Reports suggest that the PM is in favour of the employees getting higher allowances. If this is approved then a ten month long wait will come to an end. The loss has been huge for the central government employees.

It has also been an anxious and tiring wait for the past ten months. The non-implementation of the revised allowances under the 7th Pay Commission is resulting in a loss of Rs 33,000 per months. Will Modi government accept recommendations The Committee on allowances had given its view in favour of the A K Mathur led commission recommendations regarding the decrease in HRA by 2 to 6 per cent depending on the type of cities.

The 7th Pay Commission had proposed the rate of HRA allowance at 24 percent, 16 percent and 8 percent of the Basic Pay for Class X, Y and Z cities respectively. It had also recommended that that the rate of HRA will be revised to 27 percent, 18 percent and 9 percent when DA crosses 50 percent, and further revised to 30 percent, 20 percent and 10 percent when DA crosses 100 percent. The existing rates of HRA for Class X, Y and Z cities and towns are 30 percent, 20 percent and 10 percent of Basic pay (pay in the pay band plus grade pay).

If the Modi government accepts the recommendation then the HRA component of central government employees will increase between 106 and 122 per cent. Some examples A central government employee at the very bottom of the pay scale under 6th Pay Commission was till now entitled to an HRA of Rs 2,100 on basic pay of Rs 7,000 (basic pay that includes pay of pay band + grade pay) in a Class X city. While implementing the 7th Pay Commission in June last year had made it clear that till the final outcome of allowances committee is being placed, the employees would be getting the allowances as per 6th Pay Commission. French Open: Elina Svitolina, Carla Suarez reach second round Borussia Dortmund part ways with coach Thomas Tuchel Historic first at Champions Trophy: Indian trio to use chip-installed bats Featured Posts As per new commission As per 7th Pay Commission, the new entry level pay at this level is Rs 18,000 per month against which the new HRA for a Class X city would be Rs 4,320 per month, that is 106 percent more than the existing level. At the highest level of the pay scale, the Cabinet Secretary and officers of the same rank have a basic pay of Rs 90,000, which means they are entitled to current HRA of Rs 27,000 in Class X towns. After the revised pay scale, the new basic pay is Rs 2.5 lakh, for which the HRA would be Rs 60,000 ie a hike of 122 per cent.